The Canadian dollar was mixed today, unsure where to go amid opposing fundamentals. While domestic macroeconomic data was very detrimental to Canada’s currency, rising prices for crude oil was a supportive factor for the loonie.
Statistics Canada reported that retail sales fell 0.1% in May, declining for the first time in four months. Core retail sales (those that exclude motor vehicle and parts dealers) dropped 0.3%. Analysts had predicted an increase of 0.3% for both indicators.
Meanwhile, prices for North American crude oil rallied more than 1%, while international benchmark Brent crude jumped about 2%. Geopolitical tensions in the Middle East were driving the commodity up. That was positive for the Canadian dollar as oil is a major source of export revenue for Canada.
USD/CAD rose from 1.3027 to 1.3057 today, touching the session maximum of 1.3110 intraday. EUR/CAD declined from 1.4687 to 1.4647. CAD/JPY edged up from 82.35 to 82.46. CAD/CHF dropped from 0.7533 to 0.7515.
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